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Friday, 01/24/2020 7:15:03 AM

Friday, January 24, 2020 7:15:03 AM

Post# of 346504
Apparently some folks don't understand the difference in how a company is valued versus a market cap.

The market cap is just a reflection of the stock price and the market cap does not set the stock price but rather the stock price sets the market cap.

The value of a company is totally different.

What goes into valuing a company includes concrete numbers like net worth, profitability and revenues as well as values more associated with future expectations as well as things like brand value. Lots of different ways to value a company. A company like TESLA would include the value of Elon Musk just as Apple's value was effected by Steve Jobs.

The subjective parts of a companies values is what makes a man like Warren Buffett so successful. Anyone can determine a company's net worth. Assets minus Liabilities - but determining the subjective part of a company's value is basically in the eye of the beholder.